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Trusts

This category contains 158 posts

Trustee shareholders

It is important when dealing with trustee owned shares to appreciate how these might be treated for tax purposes.  The following question from the CCH/TEO Q & A Service considers how and in specie distribution of share should be treated in the context of a distribution and a resettlement. Company shareholder continuity QUESTION: Trust B … Continue reading

Rectification of mistake

The Matter of the Representation of Virtue Trustees (Switzerland) AG and Anor re The C Trust (the Trust) heard in the Royal Court of Jersey relates to a trust where a beneficiary named in the deed was also appointed a protector (by a hand amendment when the deed was executed) where the terms of the deed … Continue reading

Hastings-Bass revisited

The “Rule” in Hastings-Bass (more properly the rule in Mettoy) invites a court to “wave the judicial magic wand” and void decisions made by trustees, together with the attendant consequences,  when trustees have made decisions with consequences from which they now with to resile.    The logic of “the “Rule” was to protect beneficiaries.  However, where … Continue reading

Trading Trusts

Transactions between GST-registered trusts and beneficiaries need careful scrutiny to ensure that GST obligations are not overlooked or obfuscated by the relationship between the trustee and the beneficiary. Although GST registration is in the name of the trust, the obligations fall to the trustees. For tax purposes a GST-registered trust and its beneficiaries are associated persons.  This means … Continue reading

US Sham trust decision

The judgment in Full-Circle Staffing, LLC, Watchman Investment Trust, Financial & Tax Services, Inc., Trustee, Tax Matters Partner, Et Al. v Commissioner of Internal Revenue (Full Circle) is a consolidated judgment of the United States Tax Court. The background facts are complicated but can be summarised as follows: Mr and Mrs Pudlo restructured their freight forwarding … Continue reading

Generosity can have its limits

A grandfather, Mr Greenwood, told his grandson that he could buy his house for $300,000 after his death. He expressed this wish to others, including his daughter (mother of the grandson) who was one of the executors of his estate, although it was not in his 2005 will. This occurred in Christchurch before the Earthquakes … Continue reading

Rival contenders as trustee

Trainer v Leake involves a contest between “rival contenders as trustees of a religious trust.” Background The Hawkes Bay Revival Centre is a church founded in 1986. It is run under the auspices of the Hawkes Bay Revival Centre Trust, a trust established by Trust Deed to hold real and persona; property “for the benefit … Continue reading

Once there were ten, now there are six – but the trust argument is avoided

Land owned by ten different owners as tenants in common was sold to a buyer who was required to apply for resource consents to subdivide the property and to obtain new titles. There was a dispute and following a settlement conference Harrison J ordered that on titles being issued the owners were to transfer one … Continue reading

Removal of trustees

As noted in Van Boxel v Van Boxel at [4] “The application arises in what are familiar circumstances to this Court. The Trust owns a number of properties of which all three trustees are registered proprietors. Although Mr van Boxel holds enduring powers of attorney from his wife it is a matter of record that … Continue reading

Trustee of digital assets

Certainty as to the subject matter of a trust is one of the three fundamental requirements as to a trust.  How digital assets are defined for trust purposes and generally is now an important asset and estate planning consideration. The explosive growth of social media, digital storage and internet passwords means that careful consideration needs to be given as … Continue reading